b Problem 10B-5 (Algo) Transaction Analysis: Income Statement Preparation (L010-1, LO10-2, LO10-4, LO10-5) 67 points ebook Dent Walls Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide overhead rate that relies on direct labor hours as the allocation base. All of the company's manufacturing overhead costs are fixed- does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,882,000 of fixed manufacturing overhead for an estimated allocation base of 288,200 direct labor hours. Wallis does not maintain any beginning or ending work in process inventory The company's beginning balance sheet is as follows al Company Balance Sheet 1/1/XX (dollar in thousands Assets Cach 5720 w materiale inventory 170 Finished goods Inventory Property, plant, and equipment Total at 5 Liabilities and Equity Retained earnings Total abilities and equity Berences 0 5 59. The company's standard cost card for its only product is as follows Input Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit Standard Ouantity Hours 2 pounds 3.00 hours 3.00 hours Standard Cost Standard Price or Rate (1) (2) $ 30,40 per pound $60.00 $15.00 per hour 30.00 $ 10.00 per hour 30.00 $ 129.00 During the year Walis completed the following transactions a Purchased with cash 231000 pounds of raw material at a price of $2970 per pound b. Added 215,500 pounds of raw material to work in process to produce 95 200 units c. Assigned direct labor costs to work in process. The direct laborers (who were paid in cash) worked 245,400 hours at an average cost of $16.00 per hour to manufacture 95,200 units 6 62 DO a Purchased with cash) 231.000 pounds of raw material at a price of $29 70 per pound b. Added 215,500 pounds of raw material to work in process to produce 95,200 units C. Assigned direct labor costs to work in process. The direct laborers (who were paid in cash) worked 245,400 hours at an average cost of $16.00 per hour to manufacture 95.200 units d Applied fixed overhead to work in process inventory using the predetermined overhead rate multiplied by the number of direct labor hours allowed to manufacture 95,200 units Actual fixed overhead costs for the year were $2,741.000. Of this total $1,342,000 related to items such as insurance, utilities, and salaried indirect laborers that were all paid in cash and $1399.000 related to depreciation of equipment e Transferred 95,200 units from work in process to finished goods. 1. Sold (for cash) 92,200 units to customers at a price of $170 per unit o Transferred the standard cost associated with the 92.200 units sold from finished goods to cost of goods sold n. Paid $2,121,000 of selling and administrative expenses Closed all standard cost vanances to cost of goods sold BOOK Tint References Required: 1 Compute all direct materials, direct labor, and faxed overhead variances for the year 2. Record transactions a through for Wallis Company 3. Compute the ending balances for Wallis Company's balance sheet 4. Prepare Wallis Company income statement for the year Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Reg4 Compute all direct materials, direct labor and fixed overhead variances for the year. (Indicate the effect of each variance by selecting "F" for favorable, u for unfavorable, and one for no effect ( toro variance). Input all amounts as positive values.) Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Budget variance Volume variance Req 2 and 3 > Checy 4 Mepare Wan Company's income statement for the year Complete this question by ring answers in the Rega He and Record transactions a though for wala Company Com the ending for a company balance Converters listance to the ha WAT Toy FEE PLE M Cashi Llew M Wh Proces Ovet Wh Web 3 1 1200